welcome as to-to-"squawk box." i'm becky quick along with joe kernen. andrew ross sorkin is on assignment. everyone is talking about last night's presidential debate. by most accounts, policy trumped the so-called political zingers. among the topics that generated the most heat, taxes. >> i don't have a $5 trillion tax cut. i don't have a tax cut of the scale that you're talking about. my view is that we ought to provide tax relief to people in the middle class. but i'm not going to reduce the share of taxes paid by high income people. high income people are doing just fine in this economy. they'll do fine whether you're president or i am. the people having the hard time are middle income americans. under the president's policy, middle income americans have been buried. they're being crushed. >> for 18 months he's been running on this tax plan. and now five weeks before the

election he's saying that his big bold idea is never mind. and the fact is that if you are lowering the rates the way you describe, governor, then it is not possible to come up with enough deductions and loopholes that only affect high income individuals to avoid either raising the definite it or burdeneni ing the middle class. it's hamath. >> another hot topic, the deficit. >> it's now four years later, we still have trillion dollar defici deficits. >> $2.50 for every cut, we ask for a dollar of additional revenue paid for as i indicated earlier by asking those of us who have done very well in this country to contribute a little bit more to reduce the deficit. >> there were also some notable exchanges about jobs, health care, energy industry subsidies and regulation, all of these things got deeper than some people had been expecting.

we'll talk about those topics with john harwood. but if you were watching, as they headed in a 70% -- >> down from 80 the day before. >> right now it's down to about 66% in trade obviously suggesting romney got a big boost. >> mini flash crash. >> among our political guests this morning ready to talk about the road to election today, arianna huffington will be our guest host. huffington "post" obviously has a left bent, but it was declaring romney won the debate. ken duberstein will join us, as well. >> i was reading some of your tweets last night, john, and i liked your tweet. i tell you what i took away from the entire debate because i want to let you say it, but i saw what's possible in a life spent

without any alcohol. i saw what i could have possibly been -- i saw how i could have possibly been able to talk if i had all the brain cells that i started with. and that was what i came away with. that i just wish in a maybe i had considered that path maybe of being, you negotiation life of sobriety. anyway, what did you think, john? >> well, romney considered that path and he took that path, joe, and he tried to press his case last night. the challenge for him was to come out with the kind of aggression that could score for him while still being respectful for the president. and i think he met that challenge. he was on offense most of the time, put the president back on his heels on his record. and he challenged him directly. i thought the strongest moment that he had was when he directly challenged the president on his failure to cut the deficit over the last four years. and he cast that failure not just as a policy issue, but also as a moral issue. >> i think it's not just an

economic issue. i think it's a moral issue. i think it's frankly not moral for my generation to keep spending massively more than we take in knowing those burdens will be passed on to the next generation. and they're going to be paying the interest and the principal all their lives and the amount of debt we're adding at a trillion a year is simply not moral. >> the president came back with arguments that were familiar trying to get governor romney to acknowledge that all of the promises that he's made on tax cuts, on deficit reduction and on not burdening the middle class are simply not possible to meet. governor romney described his tax plan differently than some have seen before and then the president came back and said, hey, doesn't add up. here is their exchange. >> i'm not looking for a $5 trillion tax cut. what i've said is i won't put in place a tax cut that adds to the deficit. >> it is not possible to come up with enough deductions and loopholes that only affect high income individuals to avoid

either raising the deficit or burdening the middle class. >> now let me give you a bottom line on the debate. first of all, you had a huge shot of energy in the republican camp in the romney campaign. republicans were thrilled with his performance. democrats were not so thrilled with president obama's performance. the question is going to be has mitt romney been able in a race where he's been clearly behind the president to hurt him enough and sustain that momentum over the next three weeks. that's what's really critical. there have been strong debates, john kerry had a strong debate against george w. bush in 2004. but he wasn't able to translate that into lasting benefit. that's the best of the next three weeks, to see whether romney can keep it going or whether president obama comes out with a higher level of aggression, higher level of energy in the next debate and stop the momentum that romney accumulated last night. >> okay. yeah, i had so many different thoughts, john, as we watched

the whole thing. i remember that a lot of republicans were supporting newt gingrich because just for this moment, they wanted -- they thought newt was such a great debater, they wanted to see someone like newt talk to president obama about his policies and about the last four years. and they thought newt would have been the guy to do it. and i don't think that the republicans now feel like they lost a step by having romney there. and in watching, i've tried to sometimes espouse free market principles, private sector language about how to approach certain things. and i got to tell you, there were a couple times last night where my eyes just got wider as i listened and, i don't know, sometimes your stances can make you -- if you're right about policy, it just -- maybe it's easier to win a debate. >> well, joe, a couple points. first of all, i think you're dead on about the gingrich point because i think mitt romney was

newt gingrich's superior in the debate for the reason that i mentioned before. if you go after an incumbent president, you have to do it in the right way and new gingrich and proven over and over that he overtorts his rhetoric and goes too far and ultimately makes himself look bad. the other thing that romney did last night i think we have to acknowledge, it wasn't all free market. he was acknowledging some of the same motivationses and goals the president was. i love education, i want to provide people -- >> yeah, we all want the same thing. it's just whether you -- we want to get to the same place, it's how you want to get there. one example was like over the last three or four years, the president has been able to kind of go unchallenged when he puts forward a lot of things. like small business, that only 3% of small businesses would be affected by the tax increases. we've known all along here that that 3% are the ones that employ 54% of the workers in small businesses.

one out of four workers. you never hear that. so when you're able to sort of hide behind a campaign or david axelrod just to see it actually where someone challenged -- because presidents don't get challenged anymore. and to watch it happen stripped bare was something to behold. . >> two points on that. on your point, one of the democratic veteran strategists involved in multiple presidential campaigns made your point to me which is presidents go through an office -- go through their term for four years, they don't have anybody talking to them like that, they don't have anybody in their face like that. that's one of the reasons that democrats thought president obama was not at his best or looked rusty. but second -- >> it reminded me of hillary clinton four years ago. i had forgotten that i thought hillary clinton won in all those debates. i picked up a lot of the same mannerisms and that was before he was in the office. and could say i'm not used to --

>> he apparently kicked john kerry's butt in all the preparation. well, i've got a plan-apparently he just wasted him. they had high expectations because he kicked john kerry's -- the other thing, john, i read a couple places that it was a drag preparing for this. the next between weeks are going to be -- when's the next debate? >> vice presidential debate is next thursday. and two weeks from now the presidential. >> next two weeks will be a complete drag. >> but one other point about the substance. because we still don't know how swing voters, the people who are still -- how they view the two side by side. it is possible in a country as polarized as ours to really get your side going and think you really kicked the other guy's behind and find that it doesn't move the needle all that much. and we have to see that. but the other thing was when you talked about the policy substance and the 3% shawl

business job creators, this is where i think there were substantive weaknesses in romney's argument. he said i want to cut taxes to stimulate small businesses to hire. these are the small businesses that pay under the individual code. but he also said that he wasn't going to cut taxes for anybody in the top of the code. because he was going to take away deductions. to raise taxesn them. >> that's true, he would avoid the tax increases. but he didn't exactly explain how if he has a revenue neutral thing that i'm a successful small businessman, i'm going to cut your rate but take away your deductions. why does not make me hire more people. >> a lot of people, i think, we're in a world where -- and i've already talked to becky about this. i don't know whether the romney campaign kept him out of whether you didn't see him enough or whether -- all we get about a

person, all that we see is what the mainstream media allows us to see. and there's edits and clips and they find gaffes and they take one sentence. and so i'm not really sure whether it was the cam been's fault. romney was obviously a lot better than his campaign and maybe the president was not as good as his campaign. but the mainstream media, here's the "daily news," that's the headline. let me die? it's a lady in -- there is one thing up here, mitt was apparently a hit. >> but the paper goes to bed before -- >> i think annen consume bent president has a huge advantage apespecially a democrat. >> well, right, but it's not his campaign's fault or the media's fault. it's that if he could have a debate every week, that would be great for him. >> how come he hasn't done more live interviews? he's probably his best advocate. >> i ask the campaign to come on here every week.

>> i've been frustrated by the same thing. i understand that. i've asked them for time, as well. and that hasn't happened. but there is nothing, nothing like being with an incumbent president and challenging him. that raises a challenger simply by the fact thats it's taking place. >> did they not want to get the details out there earlier because they wanted him to have some surprises to catch the president off guard or something? >> no, becky, one -- there were two big misconceptions that i heard about the debate about that first of all, you had the president saying that mitt romney saying never mind about his tax cut, he's reversed course. that is not true. he did not do that. what mitt romney said was that i'm not going to add $5 trillion tohe deficit. he said he's going to cut taxes and he'll pay for it. he said that before. so that was not exactly right. the second misconception among some people was that romney offered a bunch more specifics than he had before. that is not true. he did not offer anymore

specifics. he just offered forceful arguments. >> when you put the 2.8 billion that we've heard about with the high trocar bon oil and gas subsidies and you compare that, this was so effective comparing it to the 90 billion that's just gone fallen by -- >> his math was a little off, but the point was an effective point. >> you know what, i just think really that it's not really that fair that jim lehrer was the only guy with a teleprompter. you'll hear about that a lot probably, too. does that seem fair to you, that he's the only guy get as teleprompter? that was part of the problem. anyway, i guess we got to -- >> that teleprompter stuff is ridiculous. >> i know. i was just going to stick with the life lived without alcohol, you have a lot of brain cells, i was going to stick with that, but i can't help myself. >> just think how much better i'd be with you if i'd done the same thing. >> exactly. but i read like bill maher, there were -- the left abandons

people so quickly if they get mad. i read from people, no, that complaint be really be him saying it. >> i think our colleagues on msnbc were pretty hot about it last night. >> that's what i mean. god bless them. all right. john harwood, thank you. one day closer to the big jobs report from the government. today thursday's weekly jobless claims report. that hits the wires at 8:30. in the meantime, what's been happening in europe is that things have barely bunched there again and they seem to be taking their cues from us.dnched there aganfroms.gnched there agand they seem to be taking their cues from us.ched there again and they seem to be taking their cues from us.hed te again and they seem to be taking their cues from us.ed there again and they seem to be taking their cues from us. dow, nasdaq, s&p all closing slightly higher yesterday. in asia, a long week without

chinese trading, but in japan, the nikkei was up by about 77 points. and in bombay, sensex up by 188 points. oil prices actually energy stocks yesterday were lagging as we saw big tumble in crude oil prices. back up by about 6 # ce4 cents, those are levels we haven't seen in quite some tile. ten year note, yielding 1.63%. so that's a slightly higher yield than yesterday. the dollar interesting story, too. you'll see that it is down against the euro. but still 1.2951. so we've been right around 1.29 or so for the last several days. dollar is up against the euro, down against the swiss franc. and gold prices right now are up about $11. we are sitting right near $1800 and ounce at $1790 an ounce and change. in our headlines this morning, european central bank expected to hold interest rates

steady. thank you for the music, joe. >> is that ominous enough? oh, here we go. >> an announcement is due about -- you made them change the music. announcement is due around 7:45 eastern time. policymakers are seeing wanting to allow time for new details to emerge on the health of the economy and for spain to ask for aid. president draghi will be holding his normal news conference at 8:30 eastern time. so if you thought we didn't have enough to talk about today, just wait. in the meantime, in corporate headlines, 3m is dropping it effort to buy avery office. this decision comes about a month after regulators raised antitrust concerns over the proposed yield because they were worried about sticky notes. that's right, sticky notes. they were worried prices would go up for post-its. avery says it will continue to pursue a sale of the business. also watch shares of hewlett-packard today. this is the big one.

the stock drop to go 59 year low after the company warned of an unexpectedly steep earnings slide in 2013. this is huge. revenue forecasts to fall in every business division except for software. ceo meg whitman blaming turnover for dragging out ph's turn around. she'll be joining our friends on "squawk on the street" later this morning. but this is a killer. hewlett-packard, dell, amd, all closing at multiyear lows. because of this guidance that comes through, hewlett-packard down 13%. closed below $15 for the first time in ten years. >> that almost is -- there's a lot of competition for companies like hewlett-packard, like three or four of them that want to do that ibm, the big guys. and you just wonder, it's getting to be like existential, whether you wonder whether it becomes the hewlett-packard of old. >> are you missing mark herd? >> he was a -- anyone would tell

you it's hard work to and a half gate throu of that gate through with the googles and -- >> is anybody ever going to buy a pc again? cramer said no matter who wins, don't by hp. >> mitt romney worp the coin toss and then put it in cayman islands. >> i can deal with that. and dennis miller, hope obamacare covers an ass kicking. >> i didn't see that. coming up, your squawk sports report. it's october. so that means plenty of baseball news. husband the day's national weather forecast. handing everything on other people. the best idea, isn't it?

i retweet, i don't tweet. i retweet. and we'll talk more about last night's presidential debate. was it a game changer. according to the just revealed business travelers awards, here are the best premium class u.s. airlines. so what carrier tops the list? stick around to find out. [ male announcer ] you are a business pro. monarch of marketing analysis. with the ability to improve roi through seo all by cob. and you...rent from national. according to the just you choose any car in the aisle... and go. you can even take a full-size or above, and still pay the mid-size price. i'm going b-i-g. [ male announcer ] good choice business pro. good choice.

go national. go like a pro.

back now with your traveler's check. which u.s. airline is tops for business travelers? for the fifth year in a row, virgin america number one overall. welcome back. let's get to today's squawk sports report. the yankees beating the red sox last night 14-2. it's definitive. new york winning its 13th division title in 17 years of a fer ter a thrilling back and forth race. on the lot of things came down to the wire. the achls defeating the rangers 12-5 to win the american league west. oakland coming from 13 games back on june 30th.

just nine days ago, they were still out by five games. >> like money ball. >> down to the wire on these things. going to be a really interesting postseason. >> this will be the sequel. money ball 2. >> and the tigers miguel cabrera winning the triple crown, the first layer to do so since 1967. he finished the regular season leading the american league in batting average, home runs and runs batted in. >> that's big. >> it is big. i don't pay a whole lot of attention to baseball, but this has been exciting. >> amazing to win the triple crown. yaz was the last one. joey votto is not hitting as many home runs. now to today's forecast. alex wallace joins us from the weather channel. looks kind of quiet there. it's been foggy the last 24 hours here. >> yeah, and that will continue

at least for today as we've got quite a bit of moisture, you can clearly see it on the satellite. clouds are showing upstreaming from the gulf up through the carolinas and up into the northeast. and that will keep us socked in with the clouds an s and off an showers. not heavy rain, but shower activity to deal with there. and also a bit of wet weather across lower michigan. also wintry weather around grand forks, eastern north dakota, working in to minnesota. decent amount of snow here. we could being talking about several inches out there for us as we work our way through the day. as we have the cold air in place, moisture all leading to some of that wintry weather that we're finding. some areas here in northern men minute could pick up to a foot up snow. we don't see that very often at least in early portions of october. and again one of the main reasons is because of the cold air that's in place for our thursday. high temperature will range anywhere from 10, 15, to 20 degrees below our average. minneapolis low 50s there for

you. and it's not crust going to be here across the northern tier of the country. the southern tier gets a chill down as we head into the weekend. today warm numbers. mid-70s oklahoma city, twl dall upper 80s, but the cooler air working its way towards the south. going from the 80s to the 50s in the big d. back to you. >> alex, thank you. >> we have the twitter guy on today, don't we? >> yes rk, we do. >> because i'm slow and people know that. but i was watching last knignig and checking blogs and stuff to see the immediate take. sglifs watchi sgli >> i was watching the twitter feed. >> that didn't occur to me. that's how lame i am. and i saw your husband mentioned me, that i'm probably -- >> you weren't watching twitter? >> no, and i said, oh, wait a minute, why don't i check --

>> hello! >> yes, it works. i could tell immediately. >> they were doing this thing where you could twist and they were having independent voters who would twist something. that is nothing compared to the twitter feed. >> this is a new world. it's amazing. >> the quickest feedback you can ever get p. >> clint eastwood's empty chair suddenly looked more prepared? no that's really not -- anyway, what's coming up? >> when we return, joe, we have an advertising indicator for you. >> people worried about andrew, too. >> he's on assignment. >> they're wondering if he's sick. >> no, he's on assignment. an interesting place actually. when we return after this, a top ad agency will tell us who is spending and who is not and what that suggests about the u.s. which i. plus the ecb set to announce a policy decision later this morning. we will talk expectations. bags,

a crash management system and the world's only tridion safety cell which can withstand over three and a half tons. small in size. big on safety.

for the spender who needs a little help saving. for adding "& sons." for the dreamer, planning an early escape. for the mother of the bride. for whoever you are, for whatever you're trying to achieve, pnc has technology, guidance, and over 150 years of experience to help you get there. ♪

[ male announcer ] the exceedingly nimble, ridiculously agile, tight turning, fun to drive 2013 smart. ♪

good morning. welcome back to -- miles is here. this is the neighborhood. >> you're schooling me on this, but i love it. >> if you like them, you're a hoodlum. >> you have a great ear. you picked the last huge indy song that went over and crossed over. >> what was it, she did a -- mac, what wases that?

yeah, she did another. >> the details and sultsity isu. i didn't hear that. >> welcome back. i'm joe kernen. miles is in andrew's seat. who it says he's on assignment. i think he's in therapy today. if you're just waking up, we're talking about reaction to the first presidential debate last night. unknown, unclear whether it's a game changer at this point. among the issues discussed, health care. >> when you look at obamacare, the congressional budget office has said it will cost 2500 a year more than traditional insurance. >> if you preel obamacare, and i have become fond of this term, obamacare, if you repeal it, what happens is those seniors right away will be paying $600 more in prescription care. they're now going to have to be paying co-pays for basic checkups that can keep them

healthier. and the primary beneficiary of that repeal are insurance companies. >> and among other things, regulation. >> in the past governor romney has said he just wants to repeal dodd-frank. roll it back. and so the question is does neb out there think that the big problem we had is that there was too much oversight and regulation of wall street? because if you do, then governor romney is your candidate. but that's not what i believe. >> sorry, that's just not the facts. look, we have to have regulation on wall street. that's why i'd have regulation. but i wouldn't designate five banks as too big to fail and give them a blank check. that's one of the unintended consequences of dodd-frank. it wasn't thought through properly. we need it on get rid of that provision because it's killing regional and small banks.

>> that was one for the practiced, which i can see he that 80 is just this morning that you're looking at. if you look earlier this weekcer this week, the contract itself was 80 and now 66. if you look at romney's, it was down at about 20, 21, and that was the move yesterday that was almost a 50% move. actually, it had already improved a little. but who knows with intrade. it's like up to $44 or, no, $3.40 for that one and for obama, it's $6 and -- i don't know. you can do 100 shares -- i don't know. more than 80,000 attendees are gathering this new york city this week for advertising week. joining us now is miles, chairman and ceo of nbc partners answer o and one of our favorites. you were born and raised in

toronto. beautiful city, beautiful clean city. we've had people we listened to this week like sam zell, very unsettled about the global economy and even here domestically and whether there's another recession that could come next year. are you seeing any signs of that based on advertising? >> no. if you talk about two consecutive quarters of negative growth, we're not seeing that in the advertising business. we're seeing modest growth. so sort of 2%, 3% kind of growth. i think it's also depends on which market. financial times said that italy, spain, turkey, greece, down 50% from where it was in 2007. but in terms of america, which is really our principal market, north america, about 90% of it is america, you're seeing modest growth. i think what you are seeing is a big shift. so you'll be pleased to know

that 40% of ad spending is still -- so $600 billion industry. 40% is still television and television continues to grow, although it is declining as a percentage of the overall pie because digital, social media, are growing, analytics, those areas are growing. newspaper, magazines, absolute declines. but i think marketers are stable. i think issues affecting advertising are what's affecting corporate america. and global corporations. which is a lack of confidence in fiscal responsibility. >> if we're talking about 2%, 3% growth, we're in an election year. >> 2% to 3% would be great for gdp. >> what would you normally see in an election year cycle? >> probably see 100 basis points more. and 2% to 3% is sort of light. we were talking 4% to 6% before. >> you made an interesting point

and i don't know how -- we had the nber guy on and i don't know whether that's an antiquated definition of a recession at this point. or maybe we don't call it a recession, the back to back negative growth. but we had jim tisch on and he said the only one that really shows just the economy was the hotel business. which is barely bouncing around along the bottom. and here we are, we lowered gdp to 1.3. this is three years into the recovery. so you wonder whether should this be called -- maybe it shouldn't p be called a recess, but either he eit's not normal. >> if you ask corporate ceos how are you feeling, you aren't feeling very good. still feels flat. and more importantly, joe, it feels uncertain.

the issues of the fiscal cliff, about balancing the budget, about what health care costs will be, what happens to taxation, those uncertainties pre-vad all decisions that ceos make including the investment in advertising and marketing. and until you have certainty, i think you'll have what feels like a very flat environment. >> i hesitate to call it the new normal other than i do believe is that a new nbc show that i could plug quickly? isn't it a new -- hell of a show. and it allowed -- helped us win the sweeps. >> do you watch "mad men"? >> i haven't yet. is that based on you? you're much better looking and that guy. >> joe, if i was better looking than jon hamm, i'd be in your seat. >> very subjective. and to me, you are.

>> that's why we have this mutual admiration society. but it is an unbelievably good show and sort of a reflection of what advertising was like in the 60s and 70s. >> but it also is a reflection of how we -- the shows that i am absolutely addicted to, i watch when i want. boardwalk empire or homeland or -- >> if you watch the newsroom or suits, they are great. those two are superb. >> and that's what worries me because these are nudity and language and all that, and i'm wonder can go a network compete. but maybe this revolution is -- i grot ot to check it out. >> one of the things we talked about last time, growth of mobile. mobile is the big talking conversation. >> you can figure out how to advertise on mobile? >> i think that technology is being developed. and think you will see that. but that is the big thing that either media companies, technology companies have

advertiser and agencies working on, how to use pdfs, how to use the tablets and mobile devices -- >> without driving me away from the site entirely on a small screen. >> yes. so that's another big topic of conversation that will be happening this week. >> we need an update on that when you filed out what the solution is for that. >> i will tell you i was on a panel with david fisher from facebook, he's very bright. very bright. and if you distinguish between the business and the stock, the business is doing quite nicely and stock ems seems to have bottomed. >> miles, thank you. >> any comments or questions, e-mail us, squawksquawk@cnbc.co. when we come back, what will president draghi say about spain is this we'll ask a visitor from europe. accolade overdrive.

zagat just gave hertz its top rating in 15 categories, including best overall car rental. so elevate your next car rental experience with the best. it's just another way you'll be traveling at the speed of hertz. we don't let frequent heartburn

come between us and what we love. so if you're one of them people who gets heartburn and then treats day after day... block the acid with prilosec otc and don't get heartburn in the first place! [ male announcer ] one pill each morning. 24 hours. zero heartburn. and don't get heartburn in the first place! if we want to improve our schools... ...what should we invest in? maybe new buildings? what about updated equipment? they can help, but recent research shows... ...nothing transforms schools like investing in advanced teacher education. let's build a strong foundation. let's invest in our teachers so they can inspire our students. let's solve this.

the president has a view very similar to the view he had when he ran four years ago. that a bigger government, spending more, taxing more, regulating more, if you will, trickle down government would work. >> mitt romney during the debate, intrade contracts all over the place during his exchanges with president obama. and i guess we've been in the twitter world unbeknownst for me for a while. >> i can't believe you figured it out part way through. >> i was looking at blogs, trying to see what people -- whether i could get any immediate reaction to how it was going. and then i check my e-mail and

it said matt mentioned you in a twitter thing. and i'm going -- and then it occurred to me, shy see what people on twitter are saying. and then i did it and it opened up the world.i should see what people on twitter are saying. and then i did it and it opened up the world. >> the one thing i decided is i don't follow enough people. i wanted even more. i follow 181 people. today i'm going to add another 100 people because i wanted more last night. >> and i never thought i would follow bill maher necessarily. and now i realize that a cutting edge comedian, even with someone he loves, he will cut him look quickly. i can't believe i'm saying this, but he does need a prompter. >> i just added stephen colbert. >> i'm going to add bill maher. >> i'm adding everybody. anyway, the eurozone taking steps to get the economy back on track. we have an ecb decision due out 7:45. joining us is brooks mcdonald

asset straechltegy. and also we'll go to the cme. we want to talk about what you see coming out of the ecb. no decision expected, but what draghi says could be important. >> exactly. europe is struggling with a lack of credibility and actually all eyes will be on spain. bailout is inevitable and there are two things holding him back. first of all, political pressure. >> from germany in. >> actually just internally. the prime minister has never had such low -- like an 84% have no faith in him. it has deteriorated. and secondly, what are the terms going to be like. he's holding back because he wants reforms himself rather than have them imposed. and it could be very tough with germany being able to vote on rescue funds.

>> rajoy may be facing internal pressure, but he also has the market pressures. when you look at the ten year, how much time does he have before they say this is it, you have to come to the table? >> he's come out and very sleerly said that as soon as yields become unsustainable, he will ask for a bailout. so he has kind of astronaut cap already in place. the only complication is obviously with draghi and his latest bond buying proposal coming out, that's put a floor in the markets which means that it's unlikely that yeeds wi yie become elevated anytime soon. it will gradually be deteriorating. >> watching the dollar euro and where it stands, today it's still at 1.29. which you look at the problems that europe still has to deal with, granted america has its own set of woe, but that 1.29 seems it's a little out of whack. >> also equity markets or bond markets, if you look at cds spreads and european banking

shares, they' are level the levl they were back in march. we had the three year ltro come out and they thought problem solved and they were disappointed. and we're kind of seeing that again. the concern we have as investors is that there is a lot of risk out there that people aren't really picking up on. the fact that this bond buying program is conditional means that it's actually hard to police. how can you be of a country that asks for support and then withdraw it and not expect the market to implode as a result. >> so the key being that there are a lot of potential mines that could get stepped on. >> i could give a physics equip to link it in because i know we were discussing that over the break. the more you understand about a particle's momentum, the speed that it's going out, the less you know about -- >> its location. >> and you can say that about europe. the more we understand about how fast things are deteriorating,

the less we understand the full extent of how big the problem is. >> sounds a little concerning. michael, why don't you weigh in on this. you hear what jemma is saying. i've been surprised at how the market has brushed off europe. do worry it will come back into the forefront? >> absolutely. well done cnbc. no one covering europe and sorting it out better than jemma. we follow her closely. and i would break with a lot of that. and for us a lot of it here in the markets are strictly just pivot points. you mentioned 1.29. there's a lot of traders that wonder why we're still up at these levels or even coming off of a breach of 1.30 when the market sleclearly has a differe perception. particularly there are markets that we watch that show where the growth is going and right now crude oil is one of them because we're below 89 and holding it from a demand perspective and then there's a whole component of where is the worry and all of a sudden gold is getting ready to breach 1800.

i think if you mix all of that together, you're starting to understand that the hurdle in the middle of the track right now being the payroll number is really going to be not necessarily a deciding factor, but it will help either get further away from those two points i mentioned and of course europe is never going to leave the scenario at least for the balance of this quarter or the next. >> the balance of this quarter or what in. >> or the nesnext. i don't want to draw it at the end of this year. the first quarter of next year will have serious scenarios with implementations because there are expectations of unlimit # easing and what is necessary. but if these solutions or these implementations don't really work themselves in to the marketplace or into main street in particular, then all of a sudden this will make a difference. >> mike, great to be on the show with you again. also the complication there is also domestically that depositors are withdrawing deposits at one of the fastest rates that we've seen since the

beginning of the year and it's creating instability and something has to be done about it. and this is causing a lot of concern within the markets and it's that undercurrent that's not yet being undercurrent not being realized potentially by the overoptimism that we're seeing. >> michael, thank you for showing up today and jemma, thank you for being on the set. joining us, anna huffington's thoughts on the debate last night and her bipartisan jobs initiative. small in size. big on safety.

[ male announcer ] how do you make 70,000 trades a second... ♪ reach one customer at a time? ♪ or help doctors turn billions of bytes of shared information... ♪ into a fifth anniversary of remission? ♪ whatever your business challenge, dell has the technology and services to help you solve it. zagat just gave hertz its top rating

in 15 categories, including best overall car rental. so elevate your next car rental experience with the best. it's just another way you'll be traveling at the speed of hertz. with the blackish-blue frame and the white dots and the splattered paint pattern, your lights are on. what? [ male announcer ] the endlessly customizable 2013 smart.

okay, we are in, this is like a married -- >> cram session. >> you need three people to do chairs. you know what this is unfortunately reminiscent of, which is -- >> what? >> i don't know, i feel like -- >> i think i know where you're going. >> i feel like regis but i don't want to be 80. >> it's okay, honey. that's not where i thought you were going to be going. >> i'm old. that's what i feel like. >> you're good. >> you're not kelly and i'm not

regis. >> not at all. >> it would be like this anyway. >> i love regis, he's probably watching. sit up. >> nothing wrong with being short. or bald. >> the website that justin bieber and is he leeknselena go has in use, some of the arguments had been that hey recan't make this a real business, can't make money on it unless we are collecting information. this is a situation where the government is in the right cracking down on this. you don't want to be taking advantage of kids online so the privacy initiative focusing on the kids is a really great move. >> it's for me with a

12-year-old daughter and she loves big on the iphone my kids do but she's doing things that are bordering on being social but instagram -- >> the picture thing, has more users than twitter. >> i don't think you know who you're talking to or where the person is you're talking to necessarily. >> you assume all people are nice, open and up front. >> do you remember one of the, we know facebook now but we don't talk about myspace anymore. there was something about myspace it got to be known in a negative way because of people cruising the, just like that other one, craigslist. >> oh, yeah, find a date. >> escorts. >> anyway, when we come back, steve liesman will join our political conversation. we have an economic fact check of last night's debate. >> who wants to be a millionaire!

driver, multi-car, paid in full -- a most fulsome bounty indeed, lord jamie. thou cometh and we thy saveth! what are you doing? we doth offer so many discounts, we have some to spare. oh, you have any of those homeowners discounts? here we go. thank you. he took my shield, my lady. these are troubling times in the kingdom. more discounts than we knoweth what to do with. now that's progressive. [ male announcer ] you are a business pro.

monarch of marketing analysis. with the ability to improve roi through seo all by cob. and you...rent from national. because only national lets you choose any car in the aisle... and go. you can even take a full-size or above, and still pay the mid-size price. i'm going b-i-g. [ male announcer ] good choice business pro. good choice. go national. go like a pro.

the high stakes economic war of words. >> for me, this is about jobs. this is about getting jobs for the american people. >> i believe that the economy works best when middle class families are getting tax breaks so that they've got some money in their pockets. >> the challenger and the president and where the race is heading now. get the analysis and the latest numbers only here. putting america back on the job. >> oh, oh, and i almost forgot, ahh, i'm also going to need you to come in on sunday. >> it's a "squawk" job summit and our guest host arianna huffington and walter isaacson and jack dorsey on his venture that could be a game changer for

small business. the second hour of "squawk box" begins right now. ♪ welcome back. this is "squawk box" on cnbc. i'm becky quick along with joe kernen. andrew is on assignment today. the bank of england leaving rates unchanged, that was expected. our guest host arianna huffington is here to talk about last night's debate and the country's jobs situation. we have a big jobs panel lined up for you today. arianna will be joined by aspen institute president walter isaacson, and bottom of the hour, twitter creator jack dorsey will talk tech, the economy and much more. at 8:00 eastern time, former ronald reagan chief of staff ken duberstein and his reaction to last night's debate and 8:00

p.m. starbucks ceo howard schultz on the best way to spur business and create jobs. europe up 60 points or so, yesterday we closed just under 13,500, our top story as you can imagine, the first presidential debate and investor reaction. president obama and republican nominee mitt romney sparring for more than an hour, an hour and a half, over the economy, tax cuts, health indication, education, and the future of big bird. huge jump on that, so hard. >> he's a huge fan of "sesame street." >> i think there's points on that, right? >> he did a good job of being affable even though he was telling jim lehrer i'd fire you. >> "sesame street" is a one-way street and only moves toward "sesame street" not toward "squawk box." >> we did meet elmo.

>> hugs and kisses! >> nice rebound for mitt romney after last night's performance almost a 50% move. we were down at 22, so it wasn't all just, can you see where the days are, it was up to 34. you didn't watch that last night? >> i thought this was the obama one. >> went from 22 to about 35. our senior -- are you not chief economyist? >> senior economicist. tomorrow i'll be chief economist. depends on what i'm doing, two jobs. >> tomorrow is jobless friday. >> huge day. >> jobs friday, sorry, not jobless friday. >> snarky, snarky. >> is it going to be, will it be in contrast to all the recent jobless frizz we hadays we have? >> there will be some jobs. >> will it be 7-9? >> you've set it up that way no

matter what happens if it's a good number it's fixed, if it's a bad number it shows that obama is not doing well on jobs. >> yes. >> all right, both ways. i thought what i'd bring this morning, joe, there were differences in style last night, two different economic programs on display, two different sets of facts about the past, i thought that was interesting and also on display, though, which was more interesting, two different philosophies about government. let's listen to republican candidate mitt romney on what he believes that role should be. >> look, the right course for america's government, we were talking about the role of government is not to become the economic player picking winners and losers, telling people who kind of health treatment they can receive, taking over the health care system that has existed in this country for a long, long time and has produced the best health records in the world. the right answer for government is to say how do we make the private sector become more efficient and more effective. >> so president obama responded with a more activist philosophy

of government. >> government has the capacity, the federal government has the capacity to help open up opportunity and create ladders of opportunity and to create frameworks where the american people can succeed. look, the genius of america is the free enterprise system and freedom and the fact that people can go out there and start a busine business, work on their own idea and make their decisions but as abraham lincoln understood there are also some things we do better together. >> the main line of attack the contention that romney could not cut taxes by increasing the deficit. romney responded he would not cut taxes if it led to a higher deficit. romney attacks the president on the job record, 23 million americans remain unemployed or underemployed. he responded saying 5 million jobs have been created over the past 30 months.

obama seems more inclined to use government programs to boost job training and education but romney points to trade, energy and the taxation structure as keys to greater job growth. i think both guys overstate their ability to create jobs and how much it's dependent on the president but if you had one, the differences between the two are pretty manifest. >> i was surprised to people on twitter, too many details, too down in the weeds. that's the only thing you want this for. if you want sound bites, listen to the ads. >> these are the same hypocrites that would say there's a lack of substance. i thought the president was lame in terms of how he presented himself but the differences between the two got out there and if you're looking to make a choice a lot of it was on display. >> i realize how much i dislike the 90 seconds rebuttal and they blew it out of the water, just ignored and talked over it. i would like to have a conversation between them. i feel like you learn so much more out of it. >> the private sector solution

to that, why do you need the moderator. why can't the two guys take care of themselves. >> romney, there were times i would say, they were saying something i was like you got to say this, and then he did many times, where we heard that since administrative costs are lower with medicare we should, the government should run our health care and it's like then we should have -- if you can just lower administrative and there's no innovation from the private sector, if there's no, you know, economies of scale and the competition makes you leaner and faster and better, if none of that were true everything would be cheaper if the government ran it. >> does it make you uncomfortable, joe, romney clearly has moved to the center here? >> i don't see that. i do not see that. >> i'm not going to reduce the share of taxes paid by the wealthy. >> et cetera' always said that. he has always said that. that's what you hear. >> the problem is that -- >> but then he said -- >> that is allowed -- >> he's coming back with 5 trillion. when you come back you prepared

for with john kerry in the debate. the thing that worked when we were talking about the president always talks about investment as if it's a really good thing in terms of the government but when you look at how you try to pick things and don't let sort of capital be allocated by the private sector, you get things like solyndra, when you have 15 people deciding on -- how about 15 people that would be really good. romney's 15 people deciding, but 15 people deciding what you get. >> i think romney's $90 billion figure investment in alternative energy watts a strong point. >> very effective. >> set that up for people to see that, set up the 90 billion. >> romney kept hammering obama on the issue that, obama set himself up for saying the budgets show the choices we make. you're right, mr. president, you invested $90 billion in

alternative investment -- alternative energy, but joe, i this i that at the end of the day -- >> i don't know what it does on november 6, we'll see. november 6 is -- >> yeah. i think the president has a point when it comes to basic research. >> you think the president can do better, he can bone up for the next? >> you've seen him do better. >> i think if you've got -- >> there were points, joe, where for example on the attack of dodd-frank, romney says you enshrine too big to fail in five banks. obama doesn't even respond to that. >> you don't think he was prepared? >> this might be a manifestation of bunker mentality at the white house. >> looked tired. >> no one's challenged him for four years. >> i know people in the administration, axelrod on nbc after the debate did a better job talking about the president's point of view. >> his campaign has been much better. >> but the president didn't do it. he didn't do it. >> well, it was a drag studying for this one. really a drag for the next two

weeks. he can bring in the cavalry with joe next week against ryan. that should be good, don't you think? >> i do. >> steve see you back in a bit? >> we'll talk about draghi at 8:30 and jobless claims. right now breaking news, julia boorstin has more on what's happening with facebook. >> that's right, the facebook announcing it has 1 billion monthly active users and 600 million mobile users, mark zuckerberg saying, making this announcement saying "i'm committed to working each day to make facebook better for you and hopefully one day we'll be able to connect the rest of the world." this is a major milestone for the company. facebook hit 500 million active users, doubling its size in two years. mark zuckerberg taped an interview with matt lauer airing exclusively on the "today" show

shortly, that sitdown his first since the ipo coming up later this afternoon. >> yesterday afternoon i saw a headline, facebook is going to charge you $7 if you want to send posts, headlines to your friends. sounded crazy. >> facebook is testing all sorts of different ad models and facebook gives you the option of paying to promote your post to your friends. so advertisers can pay to promote their posts and make sure that people who follow them see their posts and you can pay to make sure that your posts go to the top of someone's news feed and treats users just like their brands. >> pay attention to me now! >> if you want to tell people they had to tune in to see some segment that you were doing or if you really wanted to make sure that your friends saw that you were having a yard sale or something and made sure that message got out you could pay seven bucks to have your post go back to the news feed. you can buy attention.

>> we'll check in with you later. if you have any comments or questions about the debate, anything we've been talking about this morning on "squawk," tweet us @squawkcnbc is our handle. up next one of the world's most powerful women, arianna huffington will talk politics, the economy and last night's debate and looks like she is bringing gifts. oh, boy, baclava! >> i'm not looking for a $5 trillion tax cut. what i've said is i won't put in place a tax cut that adds to the deficit. >> it is not possible to come up with enough deductions and loop holes that only affect high income individuals to avoid either raising the deficit or burdening the middle class.

welcome back, everybody. we've been keeping an eye on the futures. dow futures up as much as 60 points. i don't know what you pin that on if you think this is because of the debate performance last night or a bounce back. it's hard to pin this down at this point. >> and last night, with even after the debate, you're still at 66%, 65% in trade for

president obama being reelected. so if you were thinking you were going to get a huge jump, if romney did well, it's still a 1-3 chance, his chances as far as in-trade are 1 in 3 of winning the election. it's hard to interpret. >> it is hard to interpret and 60 points is not a huge bounce for the markets but people were watching this last night and it certainly does make this race a little more interesting after the debate. >> and historically, a strong stock market between memorial day or labor day and an election almost always reelects the incumbent. >> which is probably why you've seen people, sorry -- >> then you have the problem which is historically unemployment rate over 8%, spells doom for the incumbent. >> unless you've just come through something that people are calling the great recession, where you can actually tie that unemployment rate to the prior

administration, which that might work. >> the problem we have is that -- >> who are you? i'm going to introduce you. let's get reaction. >> she needs no introduction. >> arianna huffington, co-founder and editor-in-chief of "the huffington post" and walter isaacson of the aspen institute. did you bring us anything? you ever heard of the beware of greeks bearing gifts? >> never beware of greeks bearing baclava. >> and cookies. she's lulled me into this false sense of agreeing on everything, because arianna, you're so much about jobs, and we were talking off camera that we all want jobs but there are two different ways of getting jobs and i asked you whether the private sector avenue laid out by president

romney -- oh, boy, by candidate romney, whether that spoke to you? >> well, absolutely, what the private sector can do is actually at the center of the initiative that "the huffington post" launched seven months ago and walter isaacson was a big part of it, two big themes at the conventions. we can't wite idly for government to do us something. government has failed to bring a sense of urgency with the jobs crisis. what can the private sector do and really going back to the second world war, when we all came together, when everybody did their part and walter has written and spoken a lot about it, so i would love to actually bring walter into it. >> what i said to arianna and then walter, what i thought was effective, when you look at how we were going to achieve energy independence in this country, four years ago we didn't know about horizontal drilling, we didn't know about fracking and we thought as a government let's

pick renewable, solar and wind and unbeknownst to the government in the private market, things were happening that really could get us there, at $2 per thousand cubic feet. that was my point. i thought that was effective that the government is probably not the place you want to go for infrastructure investment. am i wrong? >> i certainly think you want research and development to be done by the government as we've done ever since the 1940s. >> basic science. you don't want to pick winners and losers in the companies that are going to survive. national science foundation obviously. >> good loan guarantees can be targeted. there are many ways to do things. one of the things that arianna has been discussing and i've found very compelling is this notion that we should provide opportunities and channels for national service in a variety of industries. this is something industry could do. i've been very involved with teach for america but you could have not only a teacher's corps, you could have medical corps, you could have financial

services corps of young people coming out of college, having trouble finding a job but with industry associations, companies saying we're going to create interns and a service program where people can work for a year, maybe two years, learning a trade, learning a profession, whether they're trying to do legal services for america or financial services for america, or health or for that matter engineering, encoding, i think there are many ways for the private sector to work together with government to say here's new ways we're going to do, to make sure everybody has an opportunity and an expectation to serve their country for a year, in a public service type job but one that leads to a real profession. >> and honestly, walter and i were at a gathering that the mayor of new york had, mayor bloomberg about the tech startups in new york and what city government can do to

facilitate, accelerating job creation and walter, i don't know if you want to speak to that but it was pretty impressive. >> yes, obviously there are certain dynamos to economic growth, the information technology industry has been that since the invention of the microchip 60 years ago. i think you're seeing the connection of technology to other industries, creative industries. i would hope the education industry, the textbook industry. i think that's one of the ones that has not been disrupted yet by technology. i think that opens up a wealth of opportunities. it's something that you want a mix of the public and private sector to be involved in, because obviously education involves the public sector. >> walter, i was going to say you've spoken so eloquently about education in the past and what you're talking about with these corps you would bring in are exactly that, trying to fix that education process by getting people trained, getting them taught. >> look, i know how effective

teacher america has been. in new orleans, my hometown, when we got wiped out by the storm, 250 teacher america corps doubled in size, by the end of the year, 500, come down there to restart a school system so it is a combination of people who want to be of service to this nation, the private sector, because whether it's in the education industry, textbooks, many other things, should be in the private sector, local control, which is what we do with education, but also a national mission. so sometimes you get into a false debate, i think, on whether this should be solely the private sector or whatever. i think that if you replicate it in other industries, what teacher america has been able to do for education, you would have an inspiring stream of smart, great people dedicated to having good careers and making a change in education. many other things. >> that's really part of the goal behind this job creation initiative is to change the

narrative. the narrative at the moment has been all about the new normal, how we are not really going to be able to create jobs any time soon, so how can we change that into a narrative that focuses on results, that focuses on what actually is being done, on the hundreds and thousands of startups all around the country, on the roll of social media and helping creating jobs, changing the narrative is incredibly important. >> arianna, i know you've said look, this is about focusing on what we can do, not looking back at this. what are you frustrated government has not done to this point, that sense of urgency that's lacking that you talked about? >> i'm frustrated about the fact even when there is bipartisan agreement for example, the legislation that would allow graduates with stem degrees to be able to get visas to stay in this country. >> yes. >> that has stalled and that is a completely bipartisan bill supported by almost everyone, and we know that a quarter of small, new businesses are

created by immigrants, i'm an example of that, and why can't we just allow them to stay in this country and create jobs? >> it's been something that just about every one of the ceos who comes through here talks about on their wish list of things they want to get done. i don't understand why it's gotten frozen at that level either. >> that shows why we can't just wait for government, why the private sector foundations, individuals, have to do their part. >> walter, i think about all the great things we could actually spend some money effectively on, and then i think about where we are overall, and that was another thing. we do borrow money from china to do things now, and we're at 25% of gdp. would it be possible to be smarter about a lot of these things, and is there some merit to thinking that we do need to take care of some of these looming problems, where we're spending money not effectively before, i mean if we had growth, if we had the government, you

know, some people think it needs to get out of the way of the private sector. if we had growth doesn't that open up revenue for all of these things we could do, if we were more effective in how we manage our government? >> absolutely. i think most of the things that we've been talking about when it comes to creating service corps and bringing people in to jobs, because when you have, you know, quite a few college graduates who can't get jobs now we ought to be able to say if you're a high school graduate and career ready or a college graduate there ought to be an opportunity for to you serve. it doesn't have to be a government program paying for it. we can go to a variety of industries, whether it's, you know, television, but certainly the financial services industry, certainly the legal industry, certainly even the restaurant associations or tourist associations, which say we're going to create internships, apprenticesh apprenticeships, the type of things that used to become a

pipeline for people to have an opportunity. that's not an appropriations bill for congress to increatse our deficit. >> i haven't eaten anything yet. walter we don't have a transporter, i would send you something, like from "star trek" you didn't send anything to him do did you? >> walter your greek cookies are on the way. >> you're not that far. we hope to see you next time, and maybe arianna you'll be able to have some baclava although you know where it goes. walter isaacson we appreciate it. >> thank you, walter. the broncs bombers american eastern champs and more reaction to last night's presidential debate in denver, as we head to break another look at where intrade futures are this morning, romney futures up, the president's down, but we're still talking about a two-thirds chance for re-election for the president and one-third for mitt

romney basically, a little bit higher than that. we'll find out if it's related to last night's debate in a bit. l which can withstand over three and a half tons. small in size. big on safety. thor's couture gets the most rewards of any small business credit card. your boa! [ garth ] thor's small business earns double miles on every purchase, every day! ahh, the new fabrics, put it on my spark card. [ garth ] why settle for less? the spiked heels are working. wait! [ garth ] great businesses deserve the most rewards! [ male announcer ] the spark business card from capital one. choose unlimited rewards with double miles or 2% cash back on every purchase, every day! what's in your wallet? [ cheers and applause ] [ male announcer ] for the dreamers...

and those well grounded. for what's around this corner... and the next. there's cash flow options from pnc. solutions to help businesses like yours accelerate receivables, manage payments, and help ensure access to credit. because we know how important cash flow is to reaching your goals. pnc bank. for the achiever in you.

[ male announcer ] the exceedingly nimble, ridiculously agile, tight turning, fun to drive 2013 smart. ♪ welcome back to "squawk box," everyone. in our headlines this morning, we are just about an hour away from the labor department's weekly report on first time jobless claims.

economists are looking for a jump of 10,000 to a total of 369,000. that number comes just one day before we get the government's september employment report, that's the biggie, it's tomorrow at 8:30 but today at 8:30 we get jobless claims. also credit card delinquencies fell to an 11-year low during the second quarter according to the american bankers association but the group says delinquencies rose on home equity loans and lines of credit and home improvement loans. applied materials is planning to cut up to 1,300 jobs, about 9% of its workforce. it expects to complete the cuts by mid 2013. the world's biggest maker of chip making equipment expects to save up to $190 million annually. strike three, ball game over. season over. >> the new york yankees are once again american league east division champs. freddy garcia struck out boston's ivan dejesus for the game's final out and it was time to celebrate.

the bombers earning the best record in the american league and home field advantage throughout the remainder of their stay in the playoffs. this is the second straight year that new york has finished at the top of the division. and the third time in four years, new york's going to be playing the winner of the baltimore texas wildcard game, that begins on sunday in the alds. the party was in high gear at the a's clubhouse after their win over texas. the team celebrating their improbable a.l. west title bouncing back after being 13 games out of first place at the end of june. nine days ago they were still five games out. they'll take on the tigers in the american league division series that starts saturday. >> who is writing this? there's no national league, no such thing as the national league? >> no, we don't care about you. >> greco, great designated hitter. stuff happening in the national league as well. >> where are the reds? >> i know it's all wrapped up

but -- who cares, okay. someone in my ear, i'm not talking that. send us an e-mail at squawk@want and you can also follow us on this thing called twitter that i watched last night, i found a way to follow the debate as it was happening. >> did you love it? >> i did. i didn't do it right away. >> did you see how incredibly authentic it was? >> yes. >> did you see how obama supporters quickly expressed their dissatisfaction. >> sort of abandoned him, like rats leaving a sinking ship. on the cover of "the huffington post" it says "mitt kills it." >> no t said "mitt wins the night." we're all about the truth. >> oh, you're about the truth? oh, okay. so are we. it's just there's so many different versions. up next, twitter is buzzing over last night's presidential

debates over the fate of "sesame street's" big bird that story and twitter founder jack dorsey is next. had a break is when i was on maternity leave. i have retired from doing this one thing that i loved. now, i'm going to be able to have the time to explore something different. it's like another chapter.

mike rowe here at a ford tell me fiona, who's having a big tire event? your ford dealer. who has 11 major brands to choose from? your ford dealer. who's offering a rebate? your ford dealer. who has the low price tire guarantee... affording peace of mind to anyone who might be in the market for a new set of tires? your ford dealer. i'm beginning to sense a pattern. buy four select tires, get a $60 rebate. use the ford service credit credit card, get $60 more. that's up to $120. where did you get that sweater vest? your ford dealer.

♪ suppy day, sweeping the clouds away ♪

♪ on my way well, the twittosphere that got thousands of people to post, one moment was this one. >> i'm going to stop the subsidy to pbs. i like pbs, i love big bird. i actually like you, too, but i'm not going to keep spending on things to borrow money from china to pay for it. >> one of many things that had the twitter universe jumping on the site at one point, there were 17,000 tweets a minute for big bird, tells you about the power of twitter. joining us is jack dorsey the founder of twitter and ceo and co-founder of square. i know you're here to talk about how technology can add jobs to the economy, and what you can do with square but before we start off on that, we've been talking about twitter all morning long because it was really the way that everybody got all their feedback last night. could you see what people were thinking instantaneously do your own exit polls.

did you ever imagine that when you came up and created twitter? >> well, the idea was always to be able to instantly see what the world was talking about and thinking and what was happening in the world and we saw very similar spike in 2008 with the presidential election so we knew this would be a big part of the selection and we're happy to see people are using it. >> did you ever imagine it would be this successful and this huge when you were sitting around first thinking of this? >> we knew the idea was going to be big, but we had no idea the velocity would be so fast so we knew people would love it and use it for this election but just the mass of usage is amazing. >> you have become a constant in our life. why don't we talk about your new venture, square, if that takes off like this you've got something going here. explain the premise behind square. >> square very simply allows anyone to accept credit cards, so with their mobile phone they can download an app called

square, they put in their name, their address and we send them a free credit card reader that they can plug into their phone and they put in their bank account and they can swipe a credit card and they receive money the next business morning. >> go ahead, arianna. >> already, jack, square processes $8 billion worth of payments and is valued at $3.2 billion so it's been already an amazing success and the premises is about simplifying the complexity of credit card payments and making it cheaper for small businesses, so what do you see the connection being, between square and job creation? >> well, we believe that tools, simple tools will allow anyone to do whatever they want. so we started with the individual, so that anyone could get in the credit card processing, participate in an electronic economy. no one's carrying cash anymore, no one is carrying their

checkbooks, they carry credit cards, debit cards or prepaid cards and using them to spend everywhere. that means for small business this is he need to accept them. if they want to make the sale they have to accept plastic cards and square enables them to do it in under a minute and it goes straight to the bank account to use the money to build up and grow their business. >> how much does it cost the small business in terms of the transaction fees? some of the small businesses i frequent won't take credit cards because it costs them too much. >> typically that is true, it typically is about 3% to 5% to accept credit cards but square costs 2.75%, and there's no other fees. you don't have to buy the hardware or software, no monthly fee or setup fee or any things that are typical in the credit card industry. you just download the app for free, we send you a reader and it's 2.75% per swipe. >> how did you get the credit card companies to agree to that? >> we wanted to bring them more and more people so there's 8

million entities, 8 million businesses that accept credit cards in the united states, but there's 27 million small businesses in the united states that don't accept credit cards. the reason is they could not get in to process credit cards, they could not get into the payment rails because it's too expensive or complicated. anyone can get into it, a dog walker, a babysitter or a personal trainer. >> here we see a different model of job creation. twitter itself is not employing too many people, around 1,000. facebook is only employing globally a few thousand people and yet they're powerful platforms for job creation and they're saying facebook helped create over 230,000 jobs, i don't know if, jack, there are any reports on how many jobs twitter has helped create, just through the power of social media, and the power of small business to communicate with their customers.

do you have any numbers? >> i don't have any direct numbers but anecdotally i know that both companies, twitter and square are directly responsible for creating jobs and creating more commerce. square specifically is something that people are leaving their current work or leaving unemployment, and starting something that they love, building something that they love, whether it be a food cart or a coffee store or just becoming a piano teacher and adding to the small business economy. >> and you've also had some major early adopters like starbucks, who are going to be using it in many of their stores. >> yes, starting in the fall, starbucks will be using square as well so that anyone can walk in to a starbucks and just simply use their phone to pay using square, and we'll also be processing all of their credit cards within the u.s. stores so there's 7,000 stores around the country, and what's meaningful about this is that we built a

tool that was built originally for the individual, but we wanted to scale it to the largest organizations in the world, and it's the same tool in both cases, so we're truly leveling the playing field for any small business to compete. >> so jack, you've simplified communications through twitter, you've simplified credit card payments through square. what are you going to simplify next? >> these two are enough for now. we're working really hard to make sure that they are global, that everyone can use them and they're accessible to everyone. >> jack, we thank you very much for your time today, and we hope we get the chance to talk to you again soon. >> thank you. >> thank you. when we come back, the search for job growth, the president of the rockefeller foundation joining our guest host arianna huffington and we're awaiting a decision on the interest rates from ecb, the decision, market reaction and mario draghi's news conference are just ahead. stay right here. tdd#: 1-800-345-2550 let's talk about low-cost investing.

tdd#: 1-800-345-2550 at schwab, we're committed to offering you tdd#: 1-800-345-2550 low-cost investment options-- tdd#: 1-800-345-2550 like our exchange traded funds, or etfs tdd#: 1-800-345-2550 which now have the lowest tdd#: 1-800-345-2550 operating expenses tdd#: 1-800-345-2550 in their respective tdd#: 1-800-345-2550 lipper categories. tdd#: 1-800-345-2550 lower than spdr tdd#: 1-800-345-2550 tdd#: 1-800-345-2550 and even lower than vanguard. tdd#: 1-800-345-2550 tdd#: 1-800-345-2550 that means with schwab, tdd#: 1-800-345-2550 your portfolio has tdd#: 1-800-345-2550 a better chance to grow. tdd#: 1-800-345-2550 and you can trade all our etfs online, tdd#: 1-800-345-2550 commission-free, from your schwab account. tdd#: 1-800-345-2550 tdd#: 1-800-345-2550 so let's talk about saving money, tdd#: 1-800-345-2550 with schwab etfs. tdd#: 1-800-345-2550 schwab etfs now have the lowest operating expenses tdd#: 1-800-345-2550 in their respective lipper categories.

tdd#: 1-800-345-2550 call 1-800-4schwab tdd#: 1-800-345-2550 or visit schwab.com tdd#: 1-800-345-2550 to open an account today. tdd#: 1-800-345-2550 funding is easy tdd#: 1-800-345-2550 with schwab mobile deposit. tdd#: 1-800-345-2550 investors should consider tdd#: 1-800-345-2550 carefully information tdd#: 1-800-345-2550 contained in the prospectus, tdd#: 1-800-345-2550 including investment objectives, tdd#: 1-800-345-2550 risks, charges, and expenses. you can obtain tdd#: 1-800-345-2550 a prospectus by visiting tdd#: 1-800-345-2550 www.schwab.com/schwabetfs. tdd#: 1-800-345-2550 please read the prospectus tdd#: 1-800-345-2550 carefully before investing. tdd#: 1-800-345-2550 just getting the ecb rate decision, ecb leaving rates unchanged, the big news in 45 minutes when mario draghi will be kicking off his press conference and people will be listening closely for any hints particularly about what's

happening in spain. >> i wish andrew was here. >> so you could make him say this? >> yes. >> melomakana is my favorite of the greek sweets, made of greek honey and walnuts and so delicious. >> this guy votes the bailout in greece, why was he elected in the if, place? was that a different guy? i'm thinking of somebody else. >> that's a different guy. >> becky is eating baclava. there is a pound of but thor in one -- >> you told me that after i ate it. >> in addition to partnering with "the huffington post" the rockefeller foundation is looking at ways to unlock $100 trillion in opportunities in for-profit markets. joining us on set is dr. judith roden, president of the rockefeller foundation and former president of university

of pennsylvania and became the first female to be president of an ivy league university and you unceremoniously turned us down for the cookies. >> smarter than we are. >> you need to make an informed decision if you're going to eat one of those things. >> absolutely although i decided to eat it afterwards, that was my informed decision. >> no powder and all kinds of -- >> you know. >> what do you mean, where is the 100 trillion? you get up that level you're starting to talk real money. this would be amazing. >> right, so there's hundreds of trillions of dollars in private capital, and in all asset collapses, and what we're seeing across every asset class whether it's public or private equities, whether it's debt structures, is that there is starting to be a group of investors or a group of funds within a single investor that are looking for double bottom line, they want to have financial impact and really robust financial impact but they're also looking for a

social and environmental return as well and you can think about three kinds of people or categories, the people who are extremely wealthy and are very charitable or very philanthropic and decided maybe i shouldn't wear the two hats separately, maybe i ought to think of a way of blending my social goals with my financial goals, there's nothing wrong with making money doing good, and so they don't have to be as separated, so that's one group. the second is companies are really starting to feel that there are huge profit potentials in products that people want that have social or environmental goods so ge with echo imagi echo imagines. it is the size of a fortune 500 company, doing things, like pepsi and dow reducing water

consumption or darden zero waste in the landfill, so they're making money with those products, and they're making money with those attitudes. so that's unleashing more capital, and then the third is, i think there are a lot of philanthropies like ours, after all we were started with mega wealth at the time 183 years ago. >> oil. >> and i think that's true, that there were people, bill gates, in the current era, who really made a lot of money, got some public criticism. >> wisdom didn't give you lung cancer though. is it overstating or is it fair to say that the profit incentive does still come first to allow you to be in a position to become social? >> i think that's what's exciting about this. there are investors who want profit first, social second,

there are investors who want social first, but still some profit, and what these new categories of instruments and types of funds allow to you do is really to decide what your appetite is. >> it opens up a lot, you're much more, so many more things are possible if you're profitable and i mentioned this to howard schultz once. he's doing similar things. before you came back to starbucks and at $12 or $15 a share, that might not have been the great time to be focusing on this. you're back to $50. you've turned this around, cookin', crankin', shareholders are doing well, employees are doing well, you've hired more people. now is the time to do this. >> he's sourcing fair traded coffee and cocoa in rwanda and other countries, so he's helping the developing world in a way that doesn't have to come from foreign aid. >> right. >> he's also insourcing manufacturing of his cups in

ohio, bringing back from china and from other places and saying let's really galvanize local industry. he's in a position to be able to do that. you think about the creativity of job creation integrated with the creativity of this invest for impact space. it's amazing. >> but do companies, and we had branson on and he has had book with a nasty title, screw business or something like that. my question to him was if a company only rewards shareholders, only creates jobs, thousands and thousands of jobs, only satisfies customers by giving them what they want at a better value and a better product, do they need to not walk around holding their heads up high if they don't have a social component? isn't that, for society, isn't that in and of itself a noble -- >> i think what she's saying is that there are a lot of people,

a lot of companies that want to do both, and they are separate, and this is a way, socially impact investing is the way to combine them. any company that is profitable, creates jobs -- >> giving someone a job is as virtuous as giving someone charity. >> you're talking about another arrow in the quiver that both an individual investor has or a company has. >> you can't argue with it. >> you can't say everybody should do it and we would be the last to say everybody should do it. this is a great use of fl philanthropic dollars, create the infrastructure for those who say it's possible to do it. guys say i know how to do the financial due diligence but not the social due diligence. >> some of the guys that have made money and maybe there weren't any things associated with the company they end up giving all their personal wealth to philanthropy. >> they've given a $1 million prize with the partnership with

"the huffington post" to anyone who can come one the most creative job creation idea. all the you vooers of "squawk box" can participate in this competition. >> i love arianna, you're able to do a lot with philanthropy. thank you. [ male announcer ] for the saver, and a big first step. for the spender who needs a little help saving. for adding "& sons." for the dreamer, planning an early escape. for the mother of the bride. for whoever you are, for whatever you're trying to achieve, pnc has technology, guidance, and over 150 years of experience to help you get there. ♪ boring. boring.

[ jack ] after lauren broke up with me, i went to the citi private pass page and decided to be...not boring. that's how i met marilyn... giada... really good. yes! [ jack ] ...and alicia. ♪ this girl is on fire [ male announcer ] use any citi card to get the benefits of private pass. more concerts, more events, more experiences. [ jack ] hey, who's boring now? [ male announcer ] get more access with the citi card. eering, mouse clicks ]

still to come on "squawk," what's brewing at starbucks, the high end coffee maker by the way also an advocate for jobs creation fits right into our jobs panel today. ceo howard schultz is here to talk about his efforts to keep

america working. at 8:40 eastern time the ceo of linkedin will join us to talk about how social media is playing an important role not only in getting joe up to speed with what's happening with the debate but also in connecting businesses with job seekers. some key ways to really get americans back to work. "squawk box" is coming right back after this break. tonight our guest, thomas sargent. nobel laureate in economics, and one of the most cited economists in the world. professor sargent, can you tell me what cd rates will be in two years? no. if he can't, no one can. that's why ally has a raise your rate cd. ally bank. your money needs an ally.

♪ [ male announcer ] how do you turn an entrepreneur's dream... ♪ into a scooter that talks to the cloud? ♪ or make 70,000 trades a second... ♪ reach one customer at a time? ♪ how do you help doctors turn billions of bytes of shared information... ♪ into a fifth anniversary of remission? ♪ or turn 30-million artifacts...

♪ into a high-tech masterpiece? ♪ whatever your business challenge, dell has the technology and services to help you solve it. whatever your business challenge, mike rowe here at a ford tell me fiona, who's having a big tire event? your ford dealer. who has 11 major brands to choose from? your ford dealer. who's offering a rebate? your ford dealer. who has the low price tire guarantee... affording peace of mind to anyone who might be in the market for a new set of tires? your ford dealer. i'm beginning to sense a pattern. buy four select tires, get a $60 rebate. use the ford service credit credit card, get $60 more. that's up to $120. where did you get that sweater vest? your ford dealer.

a post debate strategy session with our guest host aria in huffington. >> when the economy is growing slow, when we're in recession you shouldn't raise taxes on anyone. >> if we're serious we have to take a balanced responsible approach. >> john harwood will join to us wrap up last night's action, talk to ken duberstein, the chief of staff for president reagan. a chain serving up more than just coffee. >> a large black coffee. >> a what? you mean a venti? >> no i mean a large. >> starbucks jobs initiative raised more than $13 million and created more than 5,000 jobs. ceo howard schultz will join us. >> fyi it's called a venti because it's 20 ounces, 20, venti! >> the social network geared toward professionals and job seekers, linkedin will talk to

us about the add to push more users. "squawk box" begins right now. ♪ >> welcome back to "squawk box" here on cnbc, first in business worldwide. i'm becky quick along with joe kernen. andrew ross sorkin is off. our guest host is arianna huffington, founder and editor-in-chief of "the huffington post" and keeping us busy through the commercial breaks, we have way too much to talk about. we have a post strategy session speaking with ken duberstein, he was the chief of staff to president reagan and interview with mark zuckerberg, the social giant announcing this morning it reached 1 billion users. coming up at 8:30 eastern weekly jobless claims, economists

expecting initial claims to increase to 369,000 and next half hour two ceos on job creation and the economy, starbucks howard schultz and linkedin's jeff weiner. first joe has the top stories. >> one is not that mark zuckerberg wears the same thing every day. and so do i. not here, but when i go home i wear the same thing. >> looks like a uniform but steve jobs did, too. einstein did the same thing or another one of the great philosophers because he said it wasted too much time to figure out what to wear during the day. >> they don't have to think about clothes. it frees a lot of band width. the ecb, when they change it, then i'll rush to it but at this point they left it unchanged again. all right, the ecb left its key interest rate unchanged. mario draghi will begin his news

conference at 8:30 a.m. eastern, we'll find out the nuances of leaving it unchanged, we'll update european equities at this point, green arrows but five, six points or so. u.s. equity futures and how do you interpret the stock market moves based on last night's debate? there's a lot of different things. with intrade at 65% for the president so at this point 65% he's reelected according to intrade, big jump for romney, almost a 50% or 40% jump on intrade but still indicating one out of three chances or 65-35%, give or take. how do you interpret a 60-point move in the dow? >> i think it's hard at this point to extrapolate. >> it is and when the market does well leading into an election, the incumbent usually does very well, but -- >> there is no question that

last night was a game changer. what is fascinating for all of us is do you remember that song, freedom is having nothing left to lose? i felt in a way that's what romney was about last night. he was down. everybody had written him off, even his allies and he was acting as though he had nothing left to lose. he was unplugged. >> i think that's sort of spun in a "huffington post" way. >> why? >> because he was tied in other national polls. >> a lot of his allies were complaining and questioning the strategy. >> peggy noonan, they haven't liked him all along, he wasn't conservative enough all along. the left likes when one or two, you know, traders decide to throw their candidate under the bus. george wells another one, who all along has not liked romney. >> we would do the same thing if president obama had people po s

supposedly in his camp trashing him. >> you saw a lot of that on twitter last night. >> what was interesting last night mitt romney was a little bit like the old mitt romney. i happened to watch an old c-span speech of his when he was running the olympics. he was very eloquent. >> we haven't seen him at all. >> that's his campaign's fault for not putting him out. >> we have sound bites and gaffes as people cut different things they want to share. >> he's not put on to do live -- look, president obama has gone on "the view" and letterman. >> i don't want him going on "the view" or "letterman" and i would criticize not meeting netanyahu and calling myself eye candy. >> it resonated when he said the government should not pick winners and losers, everybody beyond left and right agrees with that. when he actually challenged the fact that the dodd-frank does not allow --

>> banks putting out mortgages. >> they're too big to fail. >> let's bring in harwood. >> before we do, we want to show you in case you didn't see this last night, this was a heated debate. you had the two candidates facing off for the first of three debates. one of the things they argued about was romney's tax plan. >> for 18 months he's been running on this tax plan and now five weeks before the election, he's saying that his big, bold idea is nevermind, and the fact is that if you are lowering the rates you way you described, governor, then it is not possible to come up with enough deductions and loopholes that only affect high income individuals to avoid either raising the deficit or burdening the middle class. it's math. it's arithmetic. >> i don't have a $5 trillion tax cut, i don't have a tax cut

of the scale you're talking about. my view is we ought to provide tax relief to people in the middle class, but i'm not going to reduce the share of taxes paid by high income people. high income people are doing just fine in this economy, they'll do fine whether you're president or i am. the people who are having the hard time right now are middle income americans, under the president's policies, middle income americans have been buried. they're just being crushed. >> our chief washington correspondent john harwood joins us from denver. john, arianna thinks last night's debate was a game changer. what do you think? >> reporter: i'm not persuaded it's a game changer. could be. we'll see whether or not mitt romney can sustain the momentum over the next couple of weeks. we have two more presidential, one vice presidential debate but he did have a strong performance and one of the things a challenger has to do against an incumbent president is find the right tone, find a way to take him on in an aggressive fashion

while being respectful and not looking angry. mitt romney met that challenge and probably the best single example of that in my view was when he turned to the president and directly confronted him on the failure to cut the deficit so far. here's mitt romney. >> you've been president four years, you said you'd cut the deficit in half. it's four years later we have trillion-dollar deficits. the cbo says we'll have a trillion-dollar deficit each of the next four years. if you're elected we'll get to a trillion-dollar debt. you said before you'd cut the deficit in half and i love this idea of $4 trillion in cuts. you found $4 trillion of ways to reduce or get closer to a balanced budget except we show trillion-dollar deficits every year. that doesn't get the job done. >> what you heard from president obama in coming back was saying that mitt romney had abandoned his tax cut plan, that is not true because what mitt romney said was it was going to be paid for but he also said that the challenge of achieving all the things romney wants to do at the

same time, cut tax rates, not increase the deficit or burden the middle class is impossible to do. >> the only way to meet governor romney's pledge of not reducing the deficit or not adding to the deficit is by burdening middle class families, the average middle class family with children would pay about $2,000 more. >> now bottom line, guys, i said that i wasn't persuaded that arianna was right this was a game changer. one thing i know is not correct, joe, is your statement at the beginning that they were tied going into this debate. you don't have to believe me. talk to the romney campaign. they'll tell you they were behind. >> i said there was one poll yesterday that said that they were tied, what was it a national something or other poll. >> yeah but you look at all the polls, not just nationally but in the swing states he was behind. and the romney campaign acknowledged that. >> there's a difference between

being behind and having nothing left to lose because you're totally written off by even your own party. >> the point i was making -- >> i don't agree with arianna on that either. i think he was still in the game going into the debate. he's more in the game after the debate than he was before. >> even late in the fourth quarter down by, i thought he said two touchdowns. >> two scores. >> all right. late in the fourth quarter -- >> two safeties. >> it was two safeties, whatever you were talking about, i don't think that was true either. we'll see. there's a poll coming out november 6 i want you to look at. >> you're right. >> the bottom line is -- >> i will say on that point, guys, is that romney scored last night. the question is can he score again? >> how much is he down now, john? >> i think is he still down a touchdown. >> how much time is left? >> i think we've got about right

about two minutes in the game. >> two minutes?! who is the quarterback. we have rg3 or some crappy quarterback? >> rg3, you don't want to compare anybody to rg3 right now. he is a freakish talent. >> don't forget people have already started voting. >> romney did a little roethlisberger last night, he was solid, aggressive, forward leaning and i thought that worked for him. >> john, we were going to hear more from you throughout the day, great talking to you and we will see you again. >> tell those other people you're doing a report for cnbc and to shut up, would you? i heard other people. who are they? tell them to be quiet. >> you know who it is? >> who? >> the obama campaign spokeswoman is doing a live shot right next to me right now. >> we hear her. >> no comment. no comment. all right, for more on --

thanks, john. for more on last night's debate joined by ken duberstein, former chief of staff for ronald reagan, chairman and ceo of the duberstein group. how long have you had that thing in your ear, what can you respond to what we were just talking about? >> i've been listening to everybody's comments. the fact of the matter is that millions of americans in spite of all the negative ads and stuff last night was mitt romney's last chance to make a first impression and he did it and knocked it out of the ball park. any observer would say he had a strong almost dee sissive victory last night. is it a game changer? we have to wait and see on that. but i always go into things like this looking at three things. first is the challenger and acceptable alternative to the incumbent, for months obama has

been trying to raise that acceptability threshold. it didn't work last night. mitt romney became an acceptable alternative to barack obama. number two, everybody's been saying but obama is more likeable and after all, with he like to like our presidents, and last night who was the more likeable, in all of the snap polls by far it was mitt romney, not barack obama who looked like either he was having root canal or didn't want to be there. >> it was a drag, studying for it and a drag being there. >> ken, don't you think that beyond the aesthetics and cosmetics, there is a fundamental case that romney made when he said that the proof of the failure of the economic policies of the obama administration was in the fact that 50% of graduates cannot get jobs, that one in six americans are living in poverty.

>> arianna, i thought all of those statistics were very compelling because they fit into the narrative that he had painted. and the narrative was that we could do better. this is not acceptable what obama has laid out or done in the last four years and there was an optimism to romney which could date nobody has really seen. the third part is something that i refer to as the bedroom test. it's also the kitchen and the living room. who do i want in my bedroom at nighttime or first thing in the morning for the next four years or the next eight years, and the answer was after last night, at least, that i'm comfortable with mitt romney. he's smart. he's in command of the facts. he knows what he wants to do, and he can be in charge. i think there was a comfort

factor last night a lot of people had not seen. arianna said it, it's the old mitt romney or maybe it was john harwood, it was the one that everybody who knows romney for years saying he really is comfortable in his own skin. he knows what he wants to do, and can project that. we heard that last night, again a very strong first impression. >> wonderful, thank you, ken. we appreciate your input today and it was clear and concise and three steps. which helped. that helps. anyway -- >> hopefully i put it in perspective, and when you get arianna and i agreeing, it's something. >> i know, i know. >> i hadn't heard that one before. >> people talk about being, you know, well romney was prepared for the debate. i think it showed you can also look at it as whether you're prepared to be president and you can look at both now and look at the debate and the preparation. >> two more to watch, two more

times. >> and you have joe riding in on a horse next thursday to save the day. stay tuned for that. when we come backed "today" show exclusive interview with mark zuckerberg, he's talking about the growth of mobile and how to bring in revenue from facebook it's billion users. in the next half hour two c oh,s, starbucks's howard schultz and linkedin's jeff weiner. [ male announcer ] for the saver, and a big first step. for the spender who needs a little help saving.

for adding "& sons." for the dreamer, planning an early escape. for the mother of the bride. for whoever you are, for whatever you're trying to achieve, pnc has technology, guidance, and over 150 years of experience to help you get there. ♪ to help you get there. when we got married. i had three kids. and she became the full time mother of three. it was soccer, and ballet, and cheerleading, and baseball. those years were crazy. so, as we go into this next phase, you know, a big part of it for us is that there isn't anything on the schedule.

facebook marking a major milestone, the social media giant reached 1 billion users this morning. "today" show host matt lauer got a chance to interview ceo and founder mark zuckerberg. >> people look at you and say not only is this the visionary and the technical guy, this is the ceo. i was reading an article and it said this is a guy who is learning as he goes. it's like being, taking flying lessons but you're in the cockpit of a 747, and there are people in the plane. how do you feel about that? >> well, i just take the responsibility extremely seriously, and our responsibility as a company is just to do the best that we can and build the best products for people and if we build the best products, then i think that we

can continue leading in the space for a long time but that's what we need to stay focused on. >> you build the best product, that he's one thing. can the company make money? i'm not a tech guy and i'm not really a business guy and the question i ask myself and i hear over and over, if a company has a billion customers, how can they not be killing it making money? >> well, i think it depends on your definition of killing it. we aren't making billions, we're a public company so i can talk about that. the future is really going to be about mobile and the opportunities for growth there. >> you have been slow to get there, playing catchup a little bit in the mobile area? >> well we do have the most used mobile apps. there's 5 billion people in the world who have phones so we should be able to serve many more people and grow the user base there. >> zuckerberg might seem overly careful with his words but that's because he knows his company is at a critical crossroads. i'm not giving you any news that you don't know but it's been a

tough several months around here. what is morale like. lot of people came here thinking one thing is going to happen and it's changed. >> we're in a tough cycle now and that doesn't help morale but at the same time people are focused on the things they're building. >> you don't do a lot of interviews and you did one at tech crunch and apparently was successful because the next day the company's stock was up by about 7% or so. did you immediately think i got to get out there and do that more often? >> no. >> i'm going to do "dancing with the stars" do a reality show. >> my style in this is i only really want to go out and talk when there's something to say. lot of people like being in the press all the time and that's just not us. >> it certainly is not. this is someone who does not speak very often but you can watch more of matt lauer's interview with mark zuckerberg tonight on "rock center with brian williams" at 10:00 p.m. eastern time on nbc. coming up, breaking economic data 8:30 a.m. eastern, jobless

claims numbers. we'll bring you instant market reaction. coming up, "squawk" gets a shot of caffeine. >> coffee! coffee now! >> starbucks chairman and ceo howard schultz will join us at 8:35 a.m. eastern. keep watching "squawk box" on cnbc, first in business worldwide. for many, nexium helps relieve heartburn symptoms caused by acid reflux disease.

osteoporosis-related bone fractures and low magnesium levels have been seen with nexium. possible side effects include headache, diarrhea, and abdominal pain. other serious stomach conditions may still exist. talk to your doctor about nexium. mike rowe here at a ford tell me fiona, who's having a big tire event? your ford dealer. who has 11 major brands to choose from? your ford dealer. who's offering a rebate? your ford dealer. who has the low price tire guarantee... affording peace of mind to anyone who might be in the market for a new set of tires? your ford dealer. i'm beginning to sense a pattern. buy four select tires, get a $60 rebate. use the ford service credit credit card, get $60 more. that's up to $120. where did you get that sweater vest? your ford dealer.

welcome back to "squawk box" everyone. in our headline this is morning, 3m is dropping its efforts to buy avery dennison office and consumer products business, coming a month after regulators raised anti-trust concerns over the proposed deal because they were worried they might take over the sticky notes business, thought they'd have a mo mop employee there. avery says it will continue to pursue a sale of its business. shares of hewlett-packard dropping to a nine-year low, the company warning of a steep earnings slide in 2013, revenue forecast to fall in every business division except for softwa software. this has been a real shocker to the market, it's had ripple impacts through technology names. ceo meg whitman blames executive turnover for dragging out hp's turnaround, that's probably not

a news flash but you'll hear a lot more from her, she'll be joining our friends on "squawk on the street" in the next hour, an interview you do not want to miss. when we come back, initial jobless claims. you see the dow futures up 58 points, s&p futures by about 6.5. still ahead the ceos of starbucks and linkedin will join us. "squawk" will be right back.

welcome back to "squawk box." we are just a couple of minutes away from weekly jobless claims. steve liesman joins us on set. arianna huffington is our guest host today. steve, what should we be looking for? >> 370 and joe is moving the baklava my way. you want me to eat instead of talk. real quickly again, we're talking about debates at the margin. we want to know the trend, but show me a 350 number i'll be excited, show me a 400 number i'll be concerned. we're in this netherworld of 370, 380. on draghi i'm concerned he cannot do monetary policy

without political decisions made by spain. >> isn't it depressing we've accepted this new normal where, as you said we don't expect any great results. we just expect them to be a little less lousy or a little more lousy. for me the most troubling number is the number of those unemployed for longer than six months. >> terrible. >> and that's a terrible number. >> what is that number? >> that number is 5 million people, accounting for 40% of the total unemployed. that's staggering. >> it's huge and the reason why bernanke felt like he has to act no matter what and it's curious that the congress and the administration do not -- i guess the president proposed certain things but we haven't had too much response from congress regarding that. he sees it as a national emergency, and he's used that to really justify extraordinary policy, when you look at those numbers he talks about grave concern and he's really concerned about this issue that long-term unemployment becomes entrenched in the economy and we

lose a generation of workers. >> arianna brings up a good point, the new normal, we've heard from mohammed el erian using his trademark. rick santelli is standing by at the cme in chicago. go ahead. >> well we move from a revised 363 up 4,000 to 367,000. the number originally released last week was 359,000 and of course that would have put us up 8 but we're only up 4 due to the slight revision. continuing claims moved from 3.27 originally last week rev e revised to 3.281, pretty much where they stand on the current reads in arrears to the initial claims. woo, sounds like a lot of information but not really because this isn't going to do much to the marketplace. as a matter of fact you can take a snooze. anybody get excited about that? >> not really.

>> nobody does. preopening equities are higher, interest rates are a couple of basis points higher and we've moved now towards the upper end of the six basis point seven-session closing range and a ten-year note yield. we have other data points today, factory orders, i wouldn't look for that to be a barn burner and of course the minutes to the last meeting, that will be interesting to see exactly how all the emperors tailors were threading some of that material. back to you. >> rick, i just want to make a quick point that there is very little changed between the jobless claims during the survey week this month compared to the jobless claims last month so no reason to look to claims. slightly better on a week-to-week basis but the survey the government asks how many people you employed, very little change, very little reason to change your view of what's happening in the overall payroll market from the claims and no other data really, the ism manufacturing component was pretty much the same when it came to employment, same with services, so when i look at all

the other data that might help us predict doesn't do a great job, helps us predict what will happen tomorrow you're still in that, i don't know, 100 to 150,000 range, no real reason to change your view on that. >> i totally agree. we are creating jobs, it's better than losing jobs. at this pace it will take us, what, over a decade to make any dent in the unemployment rate. if you want to see gdp higher, you want to see the country do better, we need to start really creating jobs and we need to have the labor force participation rate and the percentage of, that are in the labor market, all those things need to be addressed and work together, not necessarily from the blame perspective but from the solution perspective, which is why i thought last night's debate was so fascinating. >> arianna brought up a great point about the long-term unemployed. >> especially the fact that the long-term unemployed is coupled with over 50% of recent graduates not being able to get jobs, moving in with their parents, instead of beginning

life and in a conventional way, instead of expecting them to do better than their parents, this kind of promise has been broken, and that's really why i'm saying the political system -- >> first of all you have to understand rick wants the daughters to live at home. he's already said that on television. he doesn't see that as a failure. >> i want people to take care of people, family take care of family. the notion the government is going to do it more efficiently, during the depression people hunkered down, family took care of family. then all of a sudden -- >> lived in shanty towns, that's what we need, rick. >> what happened in the fdr administration, they think they can cure everything. i've put forth michigan and illinois as defense that plan doesn't work well in the long-term. >> all right, rick, thank you very much. just a couple of quick headlines that are coming out from the draghi conference, steve, i'll run through these with you, you can tell me the most important, talk about inflation expected to stay above 2% in 2012, money

growth remaining subdued, economic growth to remain week, no shocks on any of these things. he says the omt decision helped alleviate tensions in recent weeks and that it is now essential that governments keep implementing steps to try and reduce imbalances. >> right, so he needs the spanish government to request this so he can do what he believes what needs to be done. that's why he's not independent anymore. above 2% inflation forecast may explain why the ecb defied some forecasts and not cut rates, brought that from 75 down to 50 or parody with the federal reserve. i think part of the problem is that the euro has been as strong as it's been. >> also saying the council firmly committed to preserving singleness of monetary policy. >> how can he do that in. >> the ecb is acting strictly within its mandate so maybe there are a few -- >> he needs to twist some arms to get spain to make this request so he can do what he

said is necessary to buy spanish debt and the debt of other troubled nations. he can't do it on the conditionality he put himself as an independent central banker. >> i don't know why is music is playing. coming up, starbucks providing more than just your caffeine fix. their jobs initiative, we'll talk to howard schultz in a venti interview and still to come ceo linkedin jeff weiner, in ten minutes.

up. a short word that's a tall order. up your game. up the ante. and if you stumble, you get back up. up isn't easy, and we ought to know. we're in the business of up. everyday delta flies a quarter of million people while investing billions improving everything from booking to baggage claim. we're raising the bar on flying and tomorrow we will up it yet again.

while the nation's leaders try to figure out how to stimulate the economy and create more jobs, some in the private sector are taking matters into their own hands. joining us is howard schultz, chairman and ceo of starbucks. i don't think i've ever sneelzed actually on the air but we have all of these powdered cookies that arianna brought but it could happen. how long will it take to, just give us, we've had you on before talking about it, but explain how the initiative works. >> sure. well, over the past year, we've raised millions of dollars in our stores by asking our customers to join with us in

really making a $5 donation and putting this wristband on. we've raised millions of dollars that has turned into $100 million in low interest loans and the issue at hand, joe, is this fact. as we saw in a debate last night, small business is the engine of job creation in america, about 65% of all new jobs and what we discovered over the past year or so is that small businesses across the country, despite what many of the banks have been saying, have not had access to credit, so what we've been able to do is provide low interest loans to those businesses who have not been able to get credit. this has been able to be a catalyst for job creation, and we've created thousands of jobs as a result of it. what i would say is that you know we've watched now for over a year, 14 million, 15 million people unemployed and we've all started to become immune to these numbers. i'm sitting in houston today, and we're holding a leadership

conference with 12,000 starbucks partners, and i've been in the fifth ward, a place in america that if you saw it, you would be hard pressed to believe that we're looking at a community that is part of the united states. these people have been left behind, and i think we're going about our daily work in america like everything is fine. there are so many people being left behind and we have felt at starbucks we can't wait for government solutions, we can't wait for the political people who are in power to do the right thing, because unfortunately, we're facing a situation where there's so much polarization, and businesses have to step up and do their share. we've also found i think this is really important for other businesses to understand, is that our customers and our people have been inspired by what we're trying to do. this is not a marketing campaign. this is not for pr. this is just trying to advance the cause of humanity in america and do the right thing.

>> howard, in your letter july 4th to the american people, you asked them to send you stories of what was working. >> yes. >> stories that were inspiring, stories that could help change the narrative to something much more positive. what are some of the examples that have stayed with you? >> interestingly enough, and i'm saddened to say this, but most of the letters that i received were personal letters of despair, letters that came from people across the country who lost their jobs, can't send their kids to school, lost their house, people who were in need. i got much more of those letters than inspirational stories, and i think this is once again emblematic of the fact that we have such a deep level of responsibility to try and help those people who are being left behind and i think arianna, the work that you did during the conventions and raising awareness, and even last night,

whether you're republican or democrat, at least we're beginning to crystallize and demonstrate to the american people the critical nature of these issues. and what i'm hoping, as in terms of the election, whether the governor or the president gets reelected, is that we get past this divide and once and for all we start doing the things that these people in washington had been sent to do, and that is represent all of america. >> and howard, you have other fellow ceos who have joined in your crusade. would you tell us a little bit about that? >> sure. you know, we had almost 200 ceos sign a pledge at the time, and that pledge was to ask people to stop giving funds to incumbents until we saw a level of civility and respect and compromise. now we have released those ceos from that commitment, because a year has passed, but unfortunately, we have not seen the level of civility and

respect that we need. i mean we're facing the fiscal cliff, the debt ceiling debacle we saw a year ago is hanging over the country. the s&p is threatening another level of debt -- grade reduction in terms of america's debt. we have serious problems, and all i'm trying to do as a leader of a public company, and i know it's somewhat unprecedented and unorthodox is use the platform we have to try and make a difference in a bipartisan way and really i think leverage the platform that starbucks has to try and help those people who can't help themselves. >> i know that this is a bipartisan way, you're not trying to wade into politics or anything that goes with it. last night in the debates they did get into some of the points about what's happened with our financial system. huge part of the problem not only small businesses but individuals have had a harder time getting credit after the financial collapse. you can blame that on the blanks

not wanting to loan out money, blame that out on the regulators telling them not to loan out money to people or organizations. is there something that can or should be done to get credit flowing again in the united states? >> well i think the point that was made during the debate last night about the issues of regulation, you know i'm not a banker. i speak to people who are running banks and there seems to be a level of disagreement about really what's going on and what the bank's policy is, but if you talk to those small businesses who are in dire need of credit, what they're saying to me is that the levels of bureaucracy and what they have to go through today versus in the past for their core business, to get access to credit, is very, very different, that the regulations, the standards and the fear that the banks have in making the kind of loans that were made two, three years ago is a different story. so what i would say is i can't say with specificity what the structure within these banks now are, but i can tell you that the

level of fluidity in terms of money flowing to small businesses that could create jobs is not happening. and if i could just make one other point about the macro issue. we have a situation right now in america where if we look to europe and we look to china, the situation in china today is not what it was five years ago, and what i mean by that specifically is that china is facing their own issues of a different kind of growth. they're healthy and they will continue to grow but not at the level they were. in europe we see a situation where the eurozone is under pressure. this is an opportunity for america to establish a new level of leadership and xet i haven s ne competitiveness in the world and we should seize this opportunity instead of fighting with one another over policies that have nothing to do with advancing america's progress around the world. >> you know, the one thing that

has been sharply brought into focus, howard, is jobs, at least that's what we're talking about now, talking about jobs and ways of helping people become entrepreneurs, ways of helping people start businesses in the private sector, and the government assistance is a bridge to getting them on their feet themselves to be self-sufficient and that's what we all want and that's bipartisan, howard, absolutely. right? final. >> yes. >> no one will disagree. >> no one should disagree with this, there are a bipartisan solution if we leave the egos at the door and do what's right for the american people. it's time to make that happen. the time is now. >> howard schultz, appreciate it. >> thank you very much. >> thank you so much for what you're doing. >> thank you, arianna, good to see you. thank you all. the draghi press conference is still taking place. we've been waiting to see what he would say about spain. no comment on the spanish bond yield question so for now we have to keep waiting. when we come back a social network with a focus on jobs,

we'll talk to the ceo of linkedin, jeff weiner, after this. oh...there you go. wooohooo....hahaahahaha! i'm gonna stand up to her! no you're not. i know. you know ronny folks who save hundreds of dollars switching to geico sure are happy. how happy are they jimmy? happier than a witch in a broom factory. get happy. get geico. fifteen minutes could save you fifteen percent or more. we create easy-to-use, powerful trading tools for all. look at these streaming charts! they're totally customizable and they let you visualize what might happen next. that's genius! we knew you needed a platform that could really help you elevate your trading. so we built it. chances of making this? it's a lot easier to find out if a trade is potentially profitable. just use our trade & probability calculator and there it is. for all the reasons you trade options -

from income to risk management to diversification - you'll have the tools to get it done. strategies. chains. positions. we put 'em all on one screen! could we make placing a trade any easier? mmmm...could we? around here, options are everything. yes mom, i'll place a long call to you tomorrow. i promise. open an account today and get a free 13-month eibd™ subscription when you call 1-888-280-0154 now. optionsxpress by charles schwab.

welcome back, everybody. linkedin is seeing growth in both its share price and its user base.

the company has over 175 million members, up 50% from a year ago. joining us right now his take on the outlook for hiring and for jobs in america is jeff weiner, he is america is jeff wiener, ceo of linkedin. jeff, it's great to see you today. >> great to be with you. thanks for having me. >> i know you can't talk an awful lot about the specifics of the business, but we've been talking today about what's happening in terms of technology and how you can use technology to try and combat the joblessness situation in america right now. why don't you talk a little bit about how recruiters use linked did i linkedin. >> sure, for a number of different purposes. for starters, they can do passive candidate recruiting at a scale never possible before. when we talk about passive candidates, we're talking about people that aren't actively looking for work who often can be the most qualified person for a role. because those folks are updating their profiles when not looking for work, recruiters can search for them and find them and make them an ideal fit within their companies. they can also post jobs on

linkedin. and by virtue of our daal that and relevancy algorithms, we can ensure we're getting the right job in front of the right candidate at the right time. >> how many people are signing up and doing this type of thing? give us some metrics. >> we're growing roughly two sign-ups per second. as you mentioned, we're at about 175 million members on a global basis. over 60% are coming from outside of the united states. >> jeff, you've been speaking very passionately about the skills gap, about the fact that you have 3 million job offer links but not the people who have the right skills to fill them. what are some of the most important things we can be doing to help fill the skills gap? >> arianna, i think it's a really important point. there's a lot of discussion in the country about the unemployment rate. it's good to see that trending in the right direction at just over 8%. when you factor not only the unemployed but the underemployed, those in temporary jobs looking for full-time employment and those

marginally attached to the work force, we have roughly 23 million people, 23 million americans, who are looking for more work. and incredibly, there's roughly 3.7 million available jobs in this country, and that's up roughly 300,000 year over year. and one of the reasons for that, not the exclusive reason, but one of the reasons for that is that the work force is not necessarily being trained to take the jobs that are available today. and so i think the approach to improving the situation is threefold. one, i think we can do a lot more to improve the education system. and this is not only about educational reform on a generational basis, making sure that we're training the kids of today who are the work force of tomorrow for the jobs that are going to be and not the jobs that once were. it's also about improving vocational training, creating internship programs and really creating a spirit of innovation around retraining the existing work force. so i think that's one. i think two, we need to make it easier for people born outside of the united states with unique skills and expertise who are capable of filling these available positions in the united states to get those

roles. and one way we can do that is by increasing the supply of h1v visas and make it easier for people studying science and technology to be able to remain in this country after they're graduating. an amazing data point, 40% of the fortune 500 was founded either by immigrants or the children of immigrants. so it's not just about filling these roles. it's about creating companies that, in turn, subsequently create economic opportunity for others. and the third and last point is just better use and leverage of technology and technical infrastructure. and i think in this regard, julius janikowski, chairman of the fcc, is doing some great work in terms of trying to ee van gellize a national broadband plan which among other things would lead to better technical infrastructure so that more americans would have access, digital access, to the skills, the knowledge, the expertise they need to get those available positions. and in the process of building out this infrastructure, actually creating jobs as well. >> you know, jeff, i know this

week you launched your thought leaders which was a way to get more original content to come onto the site. for disclosure, i should point out arianna is one of those thought leaders. i'm one of those thought leaders. >> do you know what my first post was? >> i do, how to sleep your way to the top. >> literally. >> arianna's big on getting a good night's sleep. >> she is, which i'm jealous of beyond belief. because she's everywhere all the time. i don't know how she does it. >> that's true. >> jeff, was this a reaction to twitter kind of ending that partnership where they had a lot of content that had been flowing through in and how's that been going in terms of getting more content on the side? >> yeah, this is actually consistent with our overall strategy in terms of how we create value for our members. a big part of what we do is oriented around professional identity and enabling professionals to represent themselves to the world and find opportunities that way, their experiences, skills, their ambitions. another part of what we do is providing unique and valuable business insight, business intelligence. you can't find anywhere else by virtue of what's being shared on

linkedin. people are sharing ideas and opinions, their expertise. and so by enabling what started as roughly 150 professional luminaries on a global basis, the two of you, we'd love to have joe in there, by the way, the president and mitt romney, richard branson, these folks are able to do two things never possible before. the first is creating long-form content, not being limited to just a status update. and the second is we're now enabling these people to be followed by our 175 million members and not have to connect with those members to be able to interact. and so the content and the knowledge that we're seeing shared is really world-class quality. and that's what our members are looking for. these are members that aren't just looking for work. the vast majority of engagement on our site is from members that are looking to be great at the jobs that they're already in. and whether it's arianna talking about the importance of sleep in terms of overall productivity within an organization, becky, yourself and a post about your optimism for the stock market,

the president of the world bank talking about what we can do to reduce poverty. this is the kind of knowledge and expertise our members love. >> jeff, we want to thank you for joining us. >> thank you, jeff. and thank you so much for being the godfather offed dedicated section, opportunity, what is working where people can send us examples of what is actually working around job creation. >> thank you for having me. and arianna, thank you so much for really spearheading that and evangelizing on how we can change the narrative. >> godfather in a good way. not breaking people's legs. i always feel bad when i don't join linkedin. i say no to people. coming up, cnbc exclusive interview with meg whitman on "squawk on the street." tomorrow on "squawk box," a data point with the power to change the presidential race. we'll get the support employment report at 8:30 a.m. eastern.

john taylor of fx concepts will be our guest host. and our panel of experts will break down the jobs data and the implications for the election. it all starts tomorrow at 6:00 a.m. eastern. , how do you know which ones to follow? the equity summary score consolidates the ratings of up to 10 independent research providers into a single score that's weighted based on how accurate they've been in the past. i'm howard spielberg of fidelity investments. the equity summary score is one more innovative reason serious investors are choosing fidelity. get 200 free trades today and explore your next investing idea.